General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
An insurance policy is a contract of adhesion, which means that:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A contract of adhesion is prepared by one party (the insurer) and presented to the other on a take-it-or-leave-it basis; the applicant cannot negotiate the policy language. Because the insurer drafts the terms, courts resolve genuine ambiguities against the insurer and in favor of the insured. This doctrine is a hallmark of insurance contracts.
Why the other options are wrong
- B) The applicant has no role in drafting the standardized policy language.
- C) Adhesion concerns drafting power and interpretation, not a guarantee of perfect clarity.
- D) The policyowner cannot unilaterally rewrite terms; changes require mutual agreement or an endorsement.
Memory hook
Insurer writes it, applicant takes it. Ambiguity? The writer loses.